FTB Help Please!

DeanM09

Im new to posting after reading the board for many months, so here goes....

Myself and my girlfriend are looking at purchasing a house we have £10k as a deposit so will be looking at 90% LTV.

We have both had issues in the past with credit histroy, i was on a Debt Management Program that finished 6 yrs ago.

I have a credit card with an outstanding balance of £1k but upto date with payments, i have one missed payment in the last 6 months.

My credit score is still low though as still building it back up from the past problems i have had, even though these are all but gone.

When i look at my credit report i have a catalogue which says payment late last month which is incorrect so i am currently trying to get this corrected.

Apart from that everything is satisfactory or settled on it.

What i do need to address is accounts being duplicated so it states i have two accounts with late payments even though it is the same one. This is the case on even the satisfactory accounts?? maybe an issue at experians end.

I earn £19k before deductions with the chance to earn commission and the girlfriend earns £12k.

I hope this is enough information, what would people suggest is the best way for us to get a good mortgage.

DeanM09

I have already sorted the duplicates out, so this is now correct and only showing one account instead of duplicates.

I just need to sort out the one late payment issue now which is incorrect.

Conrad

With a low score any mortgage lender using a credit scoring system is likely to decline.

Maybe try some small local Building Societies as some of them do not credit score. They tend to lend about 3 x the higher income + 1 of the lower, after having deducted the annual cost of any debts you have.

Otherwise get your score improved - essentially do the things nerdy types do, be ultra organised, ensure all your records are accurate, don't change address or job, do have a landline telephone number, make sure your'e on the voters roll, save money etc.

That recent late payment will have had quite an effect given the tenderness of your credit score. Just be organised and plan ahead and you'll never have a late payment again. Plan for sudden problems such as car or vets bills, don't let them swamp you.

Good luck

DeanM09

Thanks Conrad

Is it best to use a mortgage advisor / broker so they can advise and get the mortgage from the places that matter and will more likely be approved?

Conrad

Possibly, but many are not all that experienced and wont use a small local Building Society, but often such lenders pay no commision, but a fee charging broker could assist you with a direct to lender applications but be aware many brokers do not offer such a service, especially those tied to some large network such as Legal and General or Sesame or Personal Touch or one of the Estate Agent chains.

Ideally a small local broker that is DIRECTLY AUTHORISED, meaning they do all thier own compliance meaning they have more lattitude to act for a wide range of clients including those that need a small local lender that pays no commision.

DeanM09

Does anyone else have advice or suggestions?

DeanM09

Any one else have any helpful advice

Yorkie1

Conrad knows what he's talking about.

Thrugelmir

DeanM09 wrote: »

I have a credit card with an outstanding balance of £1k but upto date with payments, i have one missed payment in the last 6 months.

Set up a direct debit to pay at least the minimum balance every month. There's no excuse for late payments. That's why they are increasingly frowned upon.

Dave_Ham

Sorry - missed this thread previously

If the payment was not late, move heaven and earth to get it removed.

Have you got both your Experian and Equifax reports for you both - if not, get them pronto as these will be critical.

If nothing sinisiter is still on there from the DMP days, the late payment may be able to be mitigated.

Firstly, you cannot apply to anyone that formed part of the DMP as their systems will still show the adverse internally.

Who do you bank with and have your salary paid into?

This may also give other options.

90% LTV and less than perfect credit file, you may need to be aware that your rate will be high. Getting to 15% deposit will make a significant difference to rate.

Start with both credit reports and see exactly what is on.

And as said, definitely go nowhere near the Estate Agent mobsters...

Wh05apk

Just a minor thing, rather than appy for 90%, try 89%, sounds minor, but lebders will increase the score needed at 90%, sometimes you can creep through at 89%.